When we were all young, our culture shaped our minds that spending and buying material luxury will make us happy. We see it on TV ads and different kinds of products that show picture of celebrities as consumers. We see it on billboards and newspapers. We see it online, we see it on the right side of Facebook. Ads are everywhere and we all have become avid consumers. Result: we do not have savings and we think loans are answer to our prayers.
Good thing we have Financial Advocates sharing financial wisdom. Here’s a gold nugget that will truly help you live a satisfied life: “The Abundance Formula”, coined by the famous preacher Bo Sanchez. For us to be abundant and satisfied in life, we have to plan carefully where to allocate our regular income. We need to limit our monthly expenses to 70% of our monthly income. Or if you are so advanced in discipline, you can reduce monthly expenses to 50%. Next is the 20% of our monthly income, saved or invested in a trusted Asset Management or a Brokerage Firm. And lastly is the 10% of our monthly income given to the church or community that we regularly attend. In cases that you have a different affiliation, you can give it to a charity work or an organization that is close to your heart. That is what you call “The Abundance Formula” made up of “70-20-10” that will lead you to a happy and prosperous life.
The investment vehicle where we allocate the 20% of our income is very important mainly because at the age of 20 to 30 years old, working hard and saving hard is the priority. So, when we reach the 30’s, our money becomes our slave. Money is now working for us and we can spend time with our family and not miss a special occasion, plus, do our hobby whenever we want. But before you reach that stage, you need to carefully study different kinds of investment. This will increase the success rate of saving millions before reaching 40’s.
Your Big Fan,
P.S. If you want to know more about where to allocate the 20% of your income, e-mail me at email@example.com or call me at 936 520 5997